DFI Retail Group stands to benefit from some rerating catalysts, CGS International analysts say in a research report as they upgrade the stock's rating to add from hold and raise the target price to $2.71 from $1.85.
These catalysts include a faster recovery of the Asian retailer's Hong Kong supermarket sales, growth in Southeast Asia and a stronger-than-expected margin uplift from cost efficiencies, the analysts say.
The Asian retailer also guided for a 60% dividend payout ratio to sustain in 2025, says the brokerage, which sees potential for a special dividend this year from better profits and gearing improvement.
Shares are 0.9% lower at $2.26.
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